How to Split an Expense into Multiple Expense Categories
Pocket helps emerging eCommerce and omni-channel brands manage finance easily - by providing a one-stop solution for founders to auto-generate accrual based financial books and key analytics, and collaborate with CFOs on key decision making. Over 100 users at modern consumer brands use Pocket to manage their books, file taxes, and prepare financials for financing and fund raising.
❓Why you need to split a transaction
Finance management's goal is to create a monetary database that matches as much as possible to the real life so we could track and analyze a brand's economic value creation.
Sometimes a physical transaction, such as a bank outflow may consists of multiple sub-transactions with different economic purposes. For example, you may pay out to a vendor for multiple expense categorizes, some for marketing, some for shipping fees, others for contract labour. Split function allows your to split a transaction into multiple accounting categorizes and track them properly.